MLM is an abbreviation of Multi-Level Marketing and it is a great platform to earn money. Multi-level Marketing business is very old, it was started in the late 19th century and gradually it spread in the entire world and currently it is of more $500 billion industry. in this article, we will discuss all the detailed information about this industry
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Other names of Multi-Level Marketing are:
- Network Marketing
- Affiliate Marketing
- Product Marketing
- Direct Selling
- Referral Marketing
Some other names are also in trends but in negative-sense, Many people called it a Ponzi scheme and pyramid structure scheme.
How MLM works?
Multi-Level Marketing is a direct selling business, in which all the mediators and marketing expenses are removed between company and customer, and the person who brings the product or opportunity to the client gets the direct commission.
Types of MLM Plans
There are many types of MLM plans available in the market. Earlier only product marketing was done with the help of network Marketing, later money market joined this industry because of greed.
Majorly Multi-Level Marketing Plans are of following types:
Binary Plan
This is the most used plan in MLM industry. Only two legs or front lines are available in this category. every person allowed to sponsor only two new directs, if that person sponsors third new direct, that new direct will automatically come under any of the previously join members. In terms of earning money, this is the most preferred plan because in this type of plan earning can be generated to unlimited depth.
Level Income Plan (Uni-Level Plan)
This is the second most preferred business plan in the network marketing industry. In this type, user can open unlimited frontlines and income can be distributed on some percentage of total business per level. Higher the level higher the income, as you go lower in depth percentage of income gradually reduces.
Matrix Plan (Table Plan)
Third most used plan opted by companies is the matrix plan. it is also called table plan, Ladder plan and forced matrix plan. In this type of plan, auto pool is generated and a user can get auto-fill after the completion of his own matrix. This is completely a working plan if a person thinks that after completing his first matrix his business will automatically grow, that is completely a myth because that’s not 100% true.
Single Leg Plan
This is the most simple plan in network marketing industry. In this plan a user gets money or commission if only he able to give business in a single line.
Compensation Plan
This is the last type of MLM plans. In this type, a user simply refers to any number of users and gets direct commissions form that. Other than MLM companies are also using it to increase their users while giving some benefits to there existing customers.
Is MLM legal or illegal?
This is the hot question of this industry. In some countries, multi-level marketing business is 100% legal but with some conditions while in some other countries it’s illegal. When it comes to legality this business is called Ponzi schemes or pyramid schemes by a particular group of people. in general neither all the companies of the Multi-Level Marketing industry are legal nor illegal.
But major of the companies with some tangible products are legal and working with all the legal documentation. But when you are thinking of joining a Multi-Level Marketing company give 100% efforts in the research of that company and be fully sure about its legality before joining or promoting that. Company can be legal but in few cases persons cannot, so be very sure.
If you want to know about 10 best direct selling international companies working in India click here
Know more about Basics of mlm industry click here
